What you need to know about the true costs of car ownership in South Africa

South Africa has long been regarded as a nation passionate about cars, with many buyers loyal to specific brands and models. However, with the steady influx of new models, consumers now have more choices than ever. While the appeal of owning a new vehicle remains strong, financial realities dictate that affordability is just as important as personal preference.

As more South Africans visit showrooms in search of their next car, WesBank urges prospective buyers to consider the full cost of ownership, rather than focusing solely on the purchase price.

“Despite the recent improvement in passenger car sales, South Africa remains a price-sensitive market,” says Lebo Gaoaketse, head of marketing and ocmmunication at WesBank. “Which means that, when deciding on buying a car—whether new or used—most buyers base their decision primarily on the vehicle purchase price. But it’s important to look beyond just that price and consider the total cost of ownership, which is influenced by several other factors.”

To illustrate this, WesBank has calculated the estimated monthly expenses for one of the best-selling hatchbacks in South Africa, also tracking how ownership costs have evolved over time.

For a mid-range hatchback with a retail price of approximately R294,000 (including VAT), buyers can expect to pay an estimated monthly instalment of R5 554, 50.

This instalment is influenced by the interest rate linked to the vehicle finance contract, which varies based on factors like the buyer’s credit score and loan term.

Insurance costs

As required under all vehicle finance contracts, financed cars must be comprehensively insured. Even for cash-purchased vehicles, insurance is crucial in protecting owners against theft or accidental loss.

For the selected hatchback model, a monthly comprehensive insurance premium of approximately R1 827.24 can be expected.

Fuel costs

Although fuel prices have stabilised somewhat, they remain one of the biggest expenses in car ownership. To estimate fuel costs, buyers should calculate their car's fuel consumption rate and monthly travel distance.

For this hatchback model, monthly fuel expenses are projected to be R3 902.50.

Maintenance and upkeep

Keeping a car in optimal condition requires regular maintenance and general upkeep.

For this vehicle, owners can expect to spend roughly R475.75 per month—or R5,709 annually—on routine maintenance.

Total monthly mobility costs

When factoring in vehicle instalments, fuel, insurance, and maintenance, the total monthly ownership cost for this hatchback amounts to approximately R11,760.29.

This figure is marginally higher than the average total cost of ownership in 2024, which stood at R11,578.70 per month.

Rising costs over the years

A review of historical data highlights the steady increase in ownership costs over the years.

Due to vehicle price inflation, the estimated monthly instalment for this hatchback has risen from R2,417.03 in 2012 to R5,554.80 in 2025. Similarly, insurance premiums have climbed from R802.66 to R1 827.24, while fuel costs have surged from R1 856.75 to R3 902.50 per month.

Careful financial planning is essential

“Viewing the cost of vehicle ownership from this perspective is important,” says Gaoaketse, “and underscores the need to objectively and honestly evaluate one’s affordability level before signing a long-term vehicle finance contract, to ensure a fulfilling vehicle ownership experience.”

To assist car buyers, WesBank provides a free online vehicle finance calculator, allowing customers to estimate their monthly instalments and apply for finance online.

The bottom line

While car ownership remains a significant aspiration for many South Africans, financial realities demand careful planning and consideration. Understanding the full cost beyond the purchase price—including insurance, fuel, and maintenance—can help buyers make informed decisions and avoid financial strain.

With car prices continuing to rise, South Africans must assess their affordability realistically before committing to a long-term finance agreement, ensuring that the joy of owning a car doesn’t turn into an overwhelming financial burden.

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